Correlation Between China Railway and Hangzhou Coco
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By analyzing existing cross correlation between China Railway Group and Hangzhou Coco Healthcare, you can compare the effects of market volatilities on China Railway and Hangzhou Coco and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Railway with a short position of Hangzhou Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Hangzhou Coco.
Diversification Opportunities for China Railway and Hangzhou Coco
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Hangzhou Coco Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Coco Healthcare and China Railway is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Railway Group are associated (or correlated) with Hangzhou Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Coco Healthcare has no effect on the direction of China Railway i.e., China Railway and Hangzhou Coco go up and down completely randomly.
Pair Corralation between China Railway and Hangzhou Coco
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the Hangzhou Coco. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 1.47 times less risky than Hangzhou Coco. The stock trades about 0.0 of its potential returns per unit of risk. The Hangzhou Coco Healthcare is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 938.00 in Hangzhou Coco Healthcare on September 13, 2024 and sell it today you would earn a total of 82.00 from holding Hangzhou Coco Healthcare or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Hangzhou Coco Healthcare
Performance |
| Timeline |
| China Railway Group |
| Hangzhou Coco Healthcare |
China Railway and Hangzhou Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Hangzhou Coco
The main advantage of trading using opposite China Railway and Hangzhou Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Hangzhou Coco can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hangzhou Coco will offset losses from the drop in Hangzhou Coco's long position.| China Railway vs. Beijing Mainstreets Investment | China Railway vs. Linewell Software Co | China Railway vs. Zhongrun Resources Investment | China Railway vs. Luyin Investment Group |
| Hangzhou Coco vs. Agricultural Bank of | Hangzhou Coco vs. Industrial and Commercial | Hangzhou Coco vs. Bank of China | Hangzhou Coco vs. PetroChina Co Ltd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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